New York state will be sending out energy rebate checks in what has been named the POWER (Protecting Our Wallets Energy Rebate) program beginning in September, Gov. Hochul announced on May 28. The new state budget for Fiscal Year 2027 provides $1 billion for the program, which is characterized as a way to help New Yorkers struggling with high energy prices and record gasoline prices at the pump due to bad federal policies.
The POWER program will provide a one-time payment of $200 to joint filers of state income tax returns who have with incomes under $150,000 and $150 to joint filers with incomes between $150,000 and $300,000. Single filers with incomes under $150,000 will receive $100. The state expects that all checks would be distributed by the end of December.
People would be eligible for a rebate credit check if: during tax year 2024 they filed a timely New York State Resident Income Tax Return for Tax Year 2024; were a full-time New York state resident for Tax Year 2024; reported income within the qualifying thresholds; and were not claimed as a dependent on another taxpayer’s return.
“Dangerous policies coming out of Washington have sent the costs of power skyrocketing and New Yorkers need relief,” Gov. Kathy Hochul said.
In addition to provide funds for the rebate checks, the new budget establishes a RATES Commission that is planned to bring together consumer advocates and energy experts to investigate the root causes of surging utility bills, evaluate utility profits, and review energy market designs.
When requesting a rate increase from the Public Service Commission, utilities will now have to prove that their capital projects are absolutely necessary and that they’ve left no stone unturned in the pursuit of zero-emission options. They’ll also have to present a budget-constrained option that keeps their operating costs below the rate of inflation.
A provision in the budget requires the establishment of a new energy affordability index that is anticipated to reflect the true impact of utility rates on everyday New Yorkers. Utilities will be required to demonstrate how any proposed rate hike will impact the energy affordability index.
Utilities will be prohibited from passing the costs of lobbying, public relations campaigns, political donations, and luxury travel to New York ratepayers. If it’s determined utilities are making excess profits, the state would require that the money be returned to ratepayers, although details of how that would work were not provided.
